RBI Allowed NRIs to Invest Surplus Rupee SRVAs in G-Secs & T-Bills

Current Context: On August 12, 2025, the RBI permitted non-residents holding Special Rupee Vostro Accounts (SRVAs) to invest surplus rupee balances in Government Securities (G-Secs) and Treasury Bills (T-Bills).

• The move supports rupee internationalisation and aims to deepen the domestic debt market.
• These investments will follow FPI norms but are exempt from short-term maturity restrictions.
• AD Category-I banks must open dedicated securities accounts and provide access to the NDS-OM platform.
• Surplus funds can be used for both capital and current account transactions.
• This reform is expected to boost liquidity and yield stability.

Question:

Q.1 On August 12, 2025, what investment option did the RBI allow for surplus rupee balances in Special Rupee Vostro Accounts (SRVAs)?
a) Corporate Bonds only
b) Government Securities (G-Secs) and Treasury Bills (T-Bills)
c) Mutual Funds and ETFs
d) Real Estate Investment Trusts (REITs)

Answer: b) RBI permitted non-residents holding SRVAs to invest surplus rupee balances in G-Secs and T-Bills.